The Ultimate Business Math Test Quiz #5

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| By Arno

Arno

Community Contributor

Quizzes Created: 1 | Total Attempts: 249

Questions: 10 | Attempts: 249 | Updated: Apr 14, 2023

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The Ultimate Business Math Test Quiz #5 - Quiz

Test your financial literacy in calculating basic business calculations

Questions and Answers

1.

You buy an article for R114.00 including VAT at 14%.What did it cost you exclusive of VAT ?
- A.
  
  R100.00
- B.
  
  R105.00
- C.
  
  R110.50
- D.
  
  I don't know
Correct Answer
A. R100.00

Explanation
To arrive at the exclusive VAT amount : R114.00 x 14/114 = R100.00 |
R100.00 exclusive of VAT + 14% = R114.00

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2.

Your revenue grew from R5m per annum to R5.2m.What was your revenue growth ?
- A.
  
  3.80%
- B.
  
  5.00%
- C.
  
  4.00%
- D.
  
  I don't know
Correct Answer
C. 4.00%

Explanation
Rand value growth = R5.2m - R5m = R0.2m
Percentage growth = R0.2 / R5.0m = 4.00%
(New Less Old) / (Old)

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3.

You sell your product for R20.00 which cost you R15,40What is your markup ?
- A.
  
  25.00%
- B.
  
  30.00%
- C.
  
  32.00%
- D.
  
  I don't know
Correct Answer
B. 30.00%

Explanation
Gross Profit Margin = Sales Price – Unit Cost = R20.00 – R15.40 = R4.60

Markup Percentage = Gross Profit Margin/Unit Cost = R4.60 / R15.40 = 30%.

So you sold you product at a 30% markup on what it cost you.

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4.

Your salaries budget was R500,000.00You landed up spending R520,000.00What was the actual versus budget variance ?
- A.
  
  A R20,000 Unfavourable overrun against budget
- B.
  
  A R20,000 Favourable overrun against budget
- C.
  
  A R20,000 Favourable saving against budget
- D.
  
  I don't know
Correct Answer
A. A R20,000 Unfavourable overrun against budget

Explanation
Actual less Budget = Variance
R520,000.00 less R500,000.00 = R20,000 overrun
If actual costs are greater than budgeted costs you have a negative variance
It means you spent more than you expected which results in an overrun against budget

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5.

What is 20% of R100.00 ?
- A.
  
  R20.00
- B.
  
  R22.00
- C.
  
  R2.00
- D.
  
  I don't know
Correct Answer
A. R20.00

Explanation
Simple percentage
20% x R100.00 = 0.2 x 100 = 20%

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6.

You sold your product for R80.00 which normally sold for R98.20What was your discount ?
- A.
  
  R18.00 discount at 19.85%
- B.
  
  R17.53 discount at 16.88%
- C.
  
  R18.20 discount at 18.53%
- D.
  
  I don't know
Correct Answer
C. R18.20 discount at 18.53%

Explanation
Discount = Normal price less discounted price
R98.20 less R80.00 = R18.20
R18.20 / R80.00 = 18.53% discount

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7.

Your Business's Assets are R500,000 Your Business's Liabilities are R200,000What is the net worth of your business ?
- A.
  
  R300,000
- B.
  
  R250,000
- C.
  
  R200,000
- D.
  
  I don't know
Correct Answer
A. R300,000

Explanation
Net worth = Assets less Liabilities
R300,000 = R500,000 less R200,000

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8.

Last year you paid R120.00 for a product and this year it cost you R131.20What is the rate of inflation ?
- A.
  
  9.33%
- B.
  
  9.00%
- C.
  
  8.50%
- D.
  
  I don't know
Correct Answer
A. 9.33%

Explanation
New price less Old price / (Old price)
R131.20 less R120 = R11.20
R11.20 / R120 = 9.33% rate of inflation

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9.

Your Current Assets are R250,000 compared to R180,00 in Current Liabilities.What is your the ratio of Current assets to Current Liabilities ?
- A.
  
  2 : 1
- B.
  
  1.56 : 1.2
- C.
  
  1.39 : 1
- D.
  
  I don't know
Correct Answer
C. 1.39 : 1

Explanation
Current Assets to Current Liabilities
250,000 : 180,000
CA: 250,000 / 180,000 = 1.39
CL: 180,000 / 180,000 = 1
1.39 : 1

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10.

You generated R500,000 in revenue.Your Cost of Sales was R300,000.What is your Gross profit margin
- A.
  
  35.00%
- B.
  
  40.00%
- C.
  
  38.00%
- D.
  
  I don't know
Correct Answer
B. 40.00%

Explanation
Revenue less Cost of Sales = Gross Profit
Gross profit / Revenue = Gross Profit Margin
(R500,000 less R300,0000) = R200,000 / R500,000 = 40%

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Current Version
Apr 14, 2023

Quiz Edited by
ProProfs Editorial Team
Oct 30, 2015

Quiz Created by
Arno

The Ultimate Business Math Test Quiz #5

You buy an article for R114.00 including VAT at 14%.What did it cost you exclusive of VAT ?

Your revenue grew from R5m per annum to R5.2m.What was your revenue growth ?

You sell your product for R20.00 which cost you R15,40What is your markup ?

Your salaries budget was R500,000.00You landed up spending R520,000.00What was the actual versus budget variance ?

What is 20% of R100.00 ?

You sold your product for R80.00 which normally sold for R98.20What was your discount ?

Your Business's Assets are R500,000 Your Business's Liabilities are R200,000What is the net worth of your business ?

Last year you paid R120.00 for a product and this year it cost you R131.20What is the rate of inflation ?

Your Current Assets are R250,000 compared to R180,00 in Current Liabilities.What is your the ratio of Current assets to Current Liabilities ?

You generated R500,000 in revenue.Your Cost of Sales was R300,000.What is your Gross profit margin